SA company clinches Republic of Congo openpit mining contract

10th May 2013

By: Nomvelo Buthelezi


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Opencast mining services provider Diesel Power, in technical and management support of its fellow group subsidiary Diesel Power Congo, has been awarded an openpit mining and quarrying contract in the Republic of Congo (RoC).

The Mayoko iron-ore project of DMC Iron Congo (DMC), which is controlled by mining group Exxaro Resources, is situated in Niari province, in the north-west of the RoC, about 300 km north-east of the Port of Pointe-Noire.

This mining contract, with an initial contract period of 26 months, marks the achievement of certain strategic growth and diversification objectives by the Diesel Power group and its JSE-listed holding company, Buildmax.

Diesel Power Congo will be responsible for establishing and mining a conventional hard-rock openpit mining operation in Congo, a country with significant long-term mining prospects and reserves.

It is anticipated that the opencast mining contract will increase the groups order book by more than R220-million, which excludes all capital and funding costs associated with the mining plant that is in the process of being acquired and owned by DMC.

DMC acquired the first tranche of the required mining plant and equipment, by contracting Diesel Power under a separate supply agreement as DMC’s agent to procure, transport, establish and commission their plant to Mayoko. The first tranche was loaded and shipped from the Port of Durban at the end of February and all plant items have been successfully delivered to site in good order.

In addition to the ownership and funding of the DMC mining plant and equipment, Diesel Power Congo will be responsible for all other risks and rewards relating to the initial mining contract, including all operational responsibilities for DMC’s plant maintenance, care and efficient use.

A highly qualified management team, who have extensive experience in Africa, will be deployed by Diesel Power Congo to manage the Mayoko contract, and Diesel Power will also establish a support structure and presence in Pointe-Noire.

The Mayoko mining contract will account for a substantial portion of Diesel Power and the Buildmax group’s growth in 2014, with margins and risks commensurating with operations in countries such as the Republic of Congo.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor


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